10 reasons why you should be cautious while buying insurance from your car dealer

10 reasons why you should be cautious while buying insurance from your car dealer

Car insurance is necessary as per law. Not just that, it also offers financial protection in case of unfortunate events such as an accident. Many people also blindly opt for the dealer-provided plan, without even assessing its credibility. Do not make this mistake. Why, you ask? Just take a look at this article and you will know why.

Reasons why you should be cautious while purchasing dealer-provided car insurance

  • You don’t get to choose: This is the main and the most significant reason why you should never opt for a dealer-provider car cover. You do not get to choose the correct insurance plan. An insurance cover is quite literally imposed upon you!
  • Limited variations: As we all know, insurance needs are very specific. You need to assess the needs and then see what features your insurer provides. You need to find a plan that matches your requirements perfectly. Your dealer will mostly never go through this trouble and might offer you a generic car insurance policy.
  • No Flexibility: A car insurance cover can be customized and made flexible to suit your needs. You can do this by adjusting the cover, the deductible, the premium, etc. This cannot be done by anyone other than you, as no one knows how flexible you want your policy to be.
  • Can’t compare: You need to compare car insurance online to get the best deal. When you automatically take the dealer-provided policy, you don’t get to compare and thereby are not assured of the getting the best deal.
  • Can’t select the riders yourself: Riders form an integral part of car insurance. Your car insurance quote also depends on the number of riders you have. You should therefore choose the riders carefully. Only select the most useful ones and drop the redundant ones. When you buy a car plan from your dealer, you are forced to buy the riders they offer along with the base policy.
  • Can’t make an unbiased choice: Your dealer may have a tie-up with a particular car insurance provider. You will then be only sold the plans of that insurer. If you buy the plan on your own, you can compare car insurance online and make a completely unbiased choice.
  • Type of cover: A car insurance policy can be of two types – a third party cover or a comprehensive cover. You need to go over your requirements and see which type of cover suits you. Your dealer will not do this for you.
  • Correct submission of data: It is absolutely crucial for you to fill the application form correctly when buying car insurance. Any error here can lead to your claim being rejected later on. So, you must not leave this vital task to your dealer, fill in the details properly.
  • No need to hurry: If you opt for the car insurance policy your dealer offers, you have to quickly complete the formalities and buy the plan then and there. If you buy the plan yourself, you will have more time on your hands. You can then go over the various car insurance quotes, features, etc. and choose the most suitable plan.
  • Direct interaction with your insurer: If you buy the plan independently, you can directly interact with your car insurance provider. This is always a desirable thing to do.